BU121 Lecture Notes - Lecture 1: Business Model Canvas, Consumer Reports, Ebay
Document Summary
Razor blades: gillette sells handle for cheap and makes money from sale of razor blades, electric shavers make their money upfront, one-time-sale. Water filtration: q water- rents water filtration system for a monthly fee to restaurants. Recurring revenue (similar to subscription), selling to restaurants. Value proposition: restaurants can charge for water: aquaovo- sells water filtration systems with a stylish cooler for a one-time fee to individuals. Value proposition: much nicer than a regular water cooler: event water solutions- rents water filtration systems for a per-event fee to event holders. Model affects strategy/ways of operating: similar to a blueprint describing how an organization operates, ex. Focus on selecting content readers are willing to pay for (consumer. Reports) vs. selecting content to attract readers that advertisers want to sell to (vogue) Movie theatres- sell tickets at cost and make profits on refreshments: refreshment stand staffing is critical. Staff try to up sell (would you like to make that a combo?)